Unlike smartphones, Nintendo Switch 2 and other video game consoles won’t be exempt from Trump tariffs
Video game consoles are set to be hit hard by the tariffs
US President Donald Trump has announced that smartphones, computers, and other devices will be exempt from his tariffs, but video game consoles like the Nintendo Switch 2 will not.
In a notice published over the weekend, US Customs and Border Patrol said that specific goods would be exempt from Trump’s 10% global tariff on most countries and his Chinese import tax, which is set to send tech prices skyrocketing.
Due to the large number of components manufactured in China, and the assembly of the products themselves, it was estimated that new smartphones and laptops would increase in price by hundreds of dollars, but the new exemptions have lessened the potential impact on these products.
A notable exception from the list of exempt products, however, is video game consoles and all related accessories. Like computers and smartphones, the bulk of video game console manufacturing takes place in China, Vietnam, and other countries affected by the tariffs.
No justification has been given as to why certain technology products have been made exempt, while video game consoles and accessories haven’t.
Earlier this month, Trump introduced a blanket 10% tariff on all imports, with countries like China, Vietnam, and Japan getting larger tariffs of 54%, 46% and 24%, respectively.
Since most of Nintendo‘s imports into the US come from Vietnam and Cambodia, Trump’s decision to apply a 46% tariff on Vietnam could potentially have an effect on the price of Nintendo hardware, most notably the upcoming Switch 2. Reportedly, Nintendo moved most of its production for the Switch 2 to Vietnam in an effort to skirt potential tariffs.
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As a result, last week, Nintendo said it was delaying Switch 2 pre-orders in the US (and later Canada) so it could assess market conditions due to the country’s turbulent financial situation. It was subsequently announced that while Trump has increased China’s tariff up to 125%, he has decided to pause all other tariff hikes for 90 days, meaning his 10% tariff applies to all other affected countries, including Vietnam.
According to a report at Bloomberg, Trump’s decision to pause the hikes means it’s likely that Nintendo will keep the US Switch 2 price at $450, at least until the 46% tariff kicks in.
Earlier this month US video game trade group the Entertainment Software Association (ESA) warned that the trade tariffs imposed by US president Donald Trump “are going to have a real and detrimental impact” on the games industry, especially if the hikes beyond 10% are also implemented.
